Indonesia’s Jokowi sworn in as president as economic problems mount

Indonesia’s Joko Widodo has taken over as president of the world’s third-largest democracy, with high hopes among supporters but pressing economic problems set to test the former furniture businessman. The Guardian reported.

The former Jakarta governor, widely known as Jokowi, won a narrow victory over an ex-general in July’s election, marking the first time in the fledgling democracy’s history that a president was elected from outside the military and political elite.

“This is the time for us to unite our hearts and hands, this is the time for us… to reach and realise an Indonesia that has political sovereignty, economic independence and cultural character,” Jokowi said in his inaugural speech to a packed parliament.

The US secretary of state, John Kerry, attended the inauguration along with various Asian leaders including the prime ministers of neighbouring Malaysia and Singapore, the Sultan of Brunei and Australia’s prime minister.

Thousands gathered on the streets of the capital, Jakarta, waving flags and banners to celebrate the unprecedented ascent of the small-town businessman to leader of the country with the world’s biggest Muslim population.

The former mayor of the city of Solo already faces resistance from the establishment to his transparent, can-do approach to governance.
“He has climbed up to the top of the pyramid but he’s still weak within the powerful political class,” said Achmad Sukarsono, a political analyst at the Habibie Centre thinktank.

Jokowi has been struggling to build support in parliament, but his refusal to swap cabinet posts for backing has driven unaligned parties to the opposition, leaving him with a minority government that is set to face resistance to his proposals.

Even Jokowi’s staunchest supporters have worried that his principles might stymie his planned reforms. But the affable president with a common touch has been resolutely optimistic about working with the legislature.

After weeks of gridlock, Jokowi last week sought to improve ties when he met the opposition leader, Prabowo Subianto, and prominent opposition member Aburizal Bakrie, who pledged to support his government.

Jokowi focused much of his inaugural speech on his plan to make Indonesia, a sprawling archipelago of about 13,500 islands, a maritime power.
“We have for too long turned our backs on the ocean, the straits and the bay. This is the time for us to restore it so we will prosper like our ancestors,” he said.

He has promised to expand the country’s ports to help revive economic growth, but will need to find the funds for such an ambitious project.
His first big test looks set to be cutting back on generous fuel subsidies in the next two weeks to avoid breaching a legal limit on the budget deficit, which is under pressure from a shortfall in tax revenues and the slowest economic growth in five years.

Higher fuel prices have sparked protests in Indonesia before and contributed to the downfall of long-serving president Suharto in 1998.
Within weeks of taking office, Jokowi will be in the international limelight with an Asia-Pacific summit in Beijing and a G20 summit in Australia.

Kerry, who met Jokowi on October 20, will urge him to maintain the active role in regional foreign policy pursued by the previous administration, amid concerns the new president may be more inward-looking given a preoccupation with domestic agendas.

“What we see in the region is a pretty steady calling for Indonesia to remain active in foreign affairs,” said a US official travelling with Kerry.

Kerry will also meet the prime ministers of Malaysia and Singapore, the Sultan of Brunei, Australia’s prime minister and the foreign minister of the Philippines and will seek more help in the US-led effort against Islamic State (Isis) in the Middle East.

His discussions will cover ways to block recruitment of fighters, preventing the return of hardened fighters to the region and blocking financing, a US official said.

Indonesia’s Joko Widodo has taken over as president of the world’s third-largest democracy, with high hopes among supporters but pressing economic problems set to test the former furniture businessman. The Guardian reported.

The former Jakarta governor, widely known as Jokowi, won a narrow victory over an ex-general in July’s election, marking the first time in the fledgling democracy’s history that a president was elected from outside the military and political elite.

“This is the time for us to unite our hearts and hands, this is the time for us… to reach and realise an Indonesia that has political sovereignty, economic independence and cultural character,” Jokowi said in his inaugural speech to a packed parliament.

The US secretary of state, John Kerry, attended the inauguration along with various Asian leaders including the prime ministers of neighbouring Malaysia and Singapore, the Sultan of Brunei and Australia’s prime minister.

Thousands gathered on the streets of the capital, Jakarta, waving flags and banners to celebrate the unprecedented ascent of the small-town businessman to leader of the country with the world’s biggest Muslim population.

The former mayor of the city of Solo already faces resistance from the establishment to his transparent, can-do approach to governance.
“He has climbed up to the top of the pyramid but he’s still weak within the powerful political class,” said Achmad Sukarsono, a political analyst at the Habibie Centre thinktank.

Jokowi has been struggling to build support in parliament, but his refusal to swap cabinet posts for backing has driven unaligned parties to the opposition, leaving him with a minority government that is set to face resistance to his proposals.

Even Jokowi’s staunchest supporters have worried that his principles might stymie his planned reforms. But the affable president with a common touch has been resolutely optimistic about working with the legislature.

After weeks of gridlock, Jokowi last week sought to improve ties when he met the opposition leader, Prabowo Subianto, and prominent opposition member Aburizal Bakrie, who pledged to support his government.

Jokowi focused much of his inaugural speech on his plan to make Indonesia, a sprawling archipelago of about 13,500 islands, a maritime power.
“We have for too long turned our backs on the ocean, the straits and the bay. This is the time for us to restore it so we will prosper like our ancestors,” he said.

He has promised to expand the country’s ports to help revive economic growth, but will need to find the funds for such an ambitious project.
His first big test looks set to be cutting back on generous fuel subsidies in the next two weeks to avoid breaching a legal limit on the budget deficit, which is under pressure from a shortfall in tax revenues and the slowest economic growth in five years.

Higher fuel prices have sparked protests in Indonesia before and contributed to the downfall of long-serving president Suharto in 1998.
Within weeks of taking office, Jokowi will be in the international limelight with an Asia-Pacific summit in Beijing and a G20 summit in Australia.

Kerry, who met Jokowi on October 20, will urge him to maintain the active role in regional foreign policy pursued by the previous administration, amid concerns the new president may be more inward-looking given a preoccupation with domestic agendas.

“What we see in the region is a pretty steady calling for Indonesia to remain active in foreign affairs,” said a US official travelling with Kerry.

Kerry will also meet the prime ministers of Malaysia and Singapore, the Sultan of Brunei, Australia’s prime minister and the foreign minister of the Philippines and will seek more help in the US-led effort against Islamic State (Isis) in the Middle East.

His discussions will cover ways to block recruitment of fighters, preventing the return of hardened fighters to the region and blocking financing, a US official said.